KKR Announces Intra-Quarter Monetization Activity Update for the Fourth Quarter

Rhea-AI Summary

KKR has reported a strong monetization activity update for the period from October 1, 2022 to December 20, 2022, achieving over $500 million in total realized performance income, driven by strategic sales and investments. The income breakdown includes approximately 30% from gross realized carried interest, 25% from realized incentive fees, and 45% from realized investment income. Notably, this estimate does not predict total revenues for the quarter ending December 31, 2022 as it excludes other income and expenses.

Positive

• Total realized performance income exceeds $500 million.
• 30% from gross realized carried interest indicates strong investment management performance.
• Diverse income sources, including realized incentive fees (25%) and investment income (45%), showcase business resilience.

Negative

• Estimated figures do not predict full quarter revenue, indicating potential revenue uncertainty.

NEW YORK--(BUSINESS WIRE)-- KKR today announced a monetization activity update for the period from October 1, 2022 to December 20, 2022. Based on information available to us as of today, with respect to the period through December 20, 2022, KKR has earned total realized performance income, including realized incentive fees, and total realized investment income in excess of $500 million. Our monetization activity quarter-to-date is made up of approximately 30% gross realized carried interest, approximately 25% realized incentive fees and approximately 45% realized investment income. This activity is driven primarily by strategic and secondary sale transactions that have closed quarter-to-date, dividend and interest income from KKR’s balance sheet portfolio, as well as incentive fees from KKR’s hedge fund partnerships.

The estimate disclosed above is not intended to predict or represent total realized performance income, total realized investment income or total revenues for the full quarter ending December 31, 2022, because it does not include the results or impact of any other sources of income, including fee income, or expenses, and we may realize further gains or losses relating to total realized performance income and total realized investment income after the date of this press release. This estimate is also not necessarily indicative of the results that may be expected for any other period, including the entire year ending December 31, 2022.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

Forward-Looking Statements

This press release may contain forward-looking statements, including estimated operating results from certain monetization activities. Words such as “expect,” estimate,” “will,” “may” and “believe” or similar expressions may identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those included in these forward-looking statements, and investors should not place undue reliance on such statements. These forward-looking statements speak only as of the date of this press release, and we do not undertake any obligation to update or revise any of the forward-looking statements to reflect future events or circumstances, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221220005259/en/

Investor Relations:

Craig Larson

1-877-610-4910 (U.S.) / 212-230-9410

investor-relations@kkr.com

Media:

Kristi Huller, Miles Radcliffe-Trenner or Julia Kosygina

1-212-750-8300

media@kkr.com

Source: KKR

FAQ

What was KKR's monetization activity performance for Q4 2022?

KKR reported over $500 million in realized performance income from October 1 to December 20, 2022.

How is KKR's $500 million performance income composed?

The performance income consists of approximately 30% gross realized carried interest, 25% realized incentive fees, and 45% realized investment income.

Does KKR's reported income predict future performance?

No, the estimate does not predict total revenues for the full quarter or future periods.

What factors contributed to KKR's recent performance income?

The performance income was driven by strategic and secondary sale transactions, as well as dividend and interest income from KKR's portfolio.